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A recent income statement for BMW reports the following (in € millions). Assume 75% of the cost of sales and 75% of the selling and administrative costs are variable costs, and the remaining 25% of each is fixed. Compute the contribution margin (in € millions). (Round computations using percentages to the nearest whole euro.) Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . €92,175 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,043 Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 8,633

A recent income statement for BMW reports the following (in € millions). Assume 75% of the cost of sales and 75% of the selling and administrative costs are variable costs, and the remaining 25% of each is fixed. Compute the contribution margin (in € millions). (Round computations using percentages to the nearest whole euro.) Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . €92,175 Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,043 Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 8,633

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A recent income statement for BMW reports the following (in € millions). Assume 75% of the cost of
sales and 75% of the selling and administrative costs are variable costs, and the remaining 25% of each is
fixed. Compute the contribution margin (in € millions). (Round computations using percentages to the
nearest whole euro.) Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . €92,175
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,043
Selling and administrative expenses . . . . . . . . . . . . . . . . . . . 8,633

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